It’s an underpublicised truth that a Whiston residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Whiston property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Whiston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Whiston with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Whiston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whiston valuers.
Connor was the the leasehold owner of a 2 bedroom flat in Whiston on the market with a lease of just over fifty eight years unexpired. Connor informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2014 we were e-mailed by Dr J Martínez who, having moved into a purpose-built flat in Whiston in April 2000. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Whiston with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease finished in 2096. Having 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 plus fees.
Last Spring we were contacted by Mr Mason Bailey , who owned a ground floor flat in Whiston in January 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Whiston with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease concluded on 26 August 2076. Considering the 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including costs.